Wall Street Breakfast Podcast: Klaviyo IPO

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Klaviyo prices IPO at $30 per share. (00:27) Uber (UBER) may be forced to hike prices by 40% if EU gig work rules passed - report. (01:19) Exxon (XO) working on direct air capture technology, not EV charging stations. (02:16)

This is an abridged transcript of the podcast.

Klaviyo (KVYO) priced its initial public offering of 19.2M shares at an initial public offering price of $30.00 per share, above its top range.

The offering consists of ~11.51M shares offered by Klaviyo (KVYO) and ~7.69M shares to be sold by existing stockholders.

Underwriters will have a 30-day option to purchase up to an additional 2.88M shares from the selling stockholders.

The gross proceeds to Klaviyo (KVYO) from the offering are expected to be ~$345.2M.

The offering is expected to close on September 22. The trading is expected to kick off today, September 20.

An Uber (NYSE:UBER) executive is warning that the European Union's proposed rules for gig workers could force the company to raise prices by as much as 40% and even shut down in "hundreds" of cities.

Anabel Díaz, regional general manager of Uber's (UBER) mobility business in Europe, told the Financial Times in an interview, "If Brussels forces Uber (UBER) to reclassify drivers and couriers across the EU, we could expect to see a 50%-70% reduction in work opportunities."

Díaz also warned that if gig drivers are given the same rights as full-time workers, Uber (UBER) will be forced to hike prices for customers. In addition, fewer drivers will lead to "significantly longer wait times."

"To manage costs of employment, Uber (UBER) would be forced to consolidate hours across fewer workers," she warned.

However, Díaz doesn't expect the rules to impact Uber’s profitability in Europe.

Exxon Mobil (NYSE:XOM) is working on developing technology for direct air capture of carbon dioxide, but the company has no plans to invest in building electric vehicle charging stations.

A company executive told Reuters in an interview Tuesday, that Exxon (XOM) could become a major DAC player if high costs come down and the technology advances to a point where it can work efficiently at scale.

Exxon's (XOM) energy transition strategy is focused on reducing carbon emissions from its business, rather than investing in renewable energy sources such as solar and wind, although it is also investing in hydrogen and biofuels.

The company also has no plans to invest in building EV charging stations because it is not an area in which it can bring significant competitive advantage.

Other headlines to look out for on Seeking Alpha:

A single oil trader is sparking a price run-up for U.S. physical crude - Bloomberg

Disney slips after move to double Parks investments to $60B

Philip Morris evaluates selling stake in pharmaceuticals unit - report

On our catalyst watch for the day,

U.S. stocks on Tuesday ended in negative territory, though well off their session lows.

The spotlight was on Instacart's (CART) market debut, following on the heels of Arm Holdings' (ARM) strong initial public offering (IPO).

The Nasdaq (COMP.IND) declined 0.23%. The Dow (DJI) fell 0.31%, while the S&P 500 (SP500) retreated 0.22%.

Nine of the 11 S&P sectors closed in the red, with Energy and Consumer Discretionary the top losers. Health Care and Communication Services were the two gainers.

Treasury yields moved up. The 10-year yield (US10Y) was up 6 basis points to 4.36%, while the 2-year yield (US2Y) was up 4 basis points to 5.10%.

Now let’s take a look at the markets as of 6 am. Ahead of the opening bell today, Dow, S&P and Nasdaq futures are in the green. The Dow is up 0.2%, the S&P 500 is up 0.2% and the Nasdaq is up 0.2%. Crude oil is down 1 % at more than $90a barrel. Bitcoin is down 0.7% at less than $27,000.

In the world markets, the FTSE 100 is up 0.7% and the DAX is up 0.6%.

The biggest stock movers for the day premarket: ARS Pharmaceuticals (NASDAQ:SPRY) is down more 46% after the FDA declined to approve its epinephrine nasal spray, neffy, as a treatment for Type I allergic reactions in adults and children.

On today’s economic calendar at 2pm the FOMC announcement and at 230 pm we’ll hear from fed chair Jerome Powell.